Thanks to the great resources of its software developers, many businesses have been outsourcing their IT needs to Vietnam. If you hire developers in Vietnam, you can get quality work at a fraction of the cost of what you would pay in developed countries. In case you are about to hire developers from Vietnam, this article can be helpful for you.
Why do companies hire developers in Vietnam?
According to a report by Statista, the software technology industry in Vietnam achieved revenue of 5.44 billion USD in 2020, 500 million USD higher than the previous year. In 2021, Vietnam was ranked 6th among the top countries for outsourcing services, according to Kearney’s Global Service Location Index. According to Accelerance’s 2022 Global Outsourcing Trends and Pricing Guide, Vietnam is one of the top two outsourcing destinations in Southeast Asia.
The data above shows that Vietnam is emerging as a hot spot for IT outsourcing software development services and supplies to software developers. This also means that more and more businesses of various sizes are heading to the Vietnamese market to hire software developers or build their dedicated development teams. Let’s find out some of the reasons why companies hire developers in Vietnam:
Sizable pool of young and dedicated IT talent
With the ongoing shortage of software engineers worldwide, Vietnam now has a significant advantage because the country possesses abundant and diverse IT human resources. In particular, TopDev’s Vietnam IT market 2020 report shows that, in the first quarter of 2021, Vietnam will have more than 430,000 software developers and more than 55,000 IT students graduating from 153 IT facilities each year. One of the advantages that businesses can gain when recruiting developers in Vietnam is that they are young and dedicated.
The average working age of Vietnamese developers ranges from 20 to 29 years old, as outlined in TopDev’s 2019 Vietnam Developer Report. Furthermore, with the growing demand for an IT workforce in a variety of roles and locations, Vietnam can also provide a large number of different developers to meet development project requirements for specific software development by global enterprises (including front-end developers, back-end developers, full-stack developers, etc.).
The data above shows that Vietnam is emerging as a hot spot for IT outsourcing software development services and supplies to software developers. This also means that more and more businesses of various sizes are heading to the Vietnamese market to hire software developers or build their dedicated development teams.
High-quality technical education
Obviously, there must be a reason for Forbes to call Vietnam a “small but mighty powerhouse” in IT outsourcing services. Developers in Vietnam are highly skilled and excellent in their fields of expertise. According to the Global Skills Index in 2020, Vietnam’s technical skills are ranked 2nd in Asia Pacific and 22nd worldwide. The system focusing on STEM education in Vietnam has significantly contributed to the development of the domestic software engineering team, training a large number of IT talents ready to serve many businesses of all sizes globally. Vietnamese software developers are not only technically good but also proficient in soft skills and highly committed to results. Many companies hiring developers in Vietnam use these qualities as priority criteria when looking for potential candidates.
Good foreign language proficiency
While the language barrier is always an obstacle in IT outsourcing abroad, hindering the path to success for many businesses, it is not a big problem in Vietnam. Because all college and university graduates in Vietnam are fluent in English, regardless of major, most software developers in Vietnam are able to communicate well in English. According to EF Education’s first English Proficiency Index, Vietnamese developers’ English proficiency is ranked 13th in Asia and 65th globally. The English proficiency requirements of software developers in Vietnam are shifting from “nice to have” to “must have”, which will greatly assist you in communicating when working with them.
Attractive cost
When businesses hire developers in Vietnam, they can take advantage of lower labor costs to cut costs. The TopDev 2019 report also shows that the average salary of a good, experienced developer in Vietnam is about 1,322 USD, which is a highly competitive price, 30–50% cheaper than outsourcing destinations. Other IT countries like America, China, and India. There is no doubt that, with reasonable prices and guaranteed quality, hiring developers in Vietnam is a wise decision for companies looking to reduce costs without compromising on quality.
A Lot of Trusted Software Outsourcing Service Providers
There are a large number of software outsourcing providers in Vietnam that have cooperated with international businesses in various IT-related industries and have achieved a good reputation. These trusted IT outsourcing companies in Vietnam can not only provide you with innovative software solutions but can also provide you with IT staffing and development center augmentation services. By choosing a potential partner for your company, you will significantly assist in recruiting top software developers in Vietnam and building your own dedicated development team at a reasonable cost.
Stable IT human resources with a low turnover rate
Working with Vietnamese software developers, you will be less concerned about job turnover or high employee turnover rates because Vietnam’s IT-related turnover rate is lower than other outsourcing countries (such as 5% lower than other countries, such as India). Software developers in Vietnam tend to stay with their companies for a long time.
Challenges if you hire developers in Vietnam
Time zone differences
This is not too much of a problem because you can reduce the impact of time zone differences. You and your dedicated development team can sit down and discuss the working hours that work best for both of you. For example, you might consider working with your developers during the day so they have time to rest and recharge for the next day. Additionally, you can also take advantage of the time zone difference to get work done while they are sleeping.
Cultural barriers
If you don’t handle these gaps properly, they can cause more problems over time. Luckily, as mentioned above, the language barrier is no longer a threat when recruiting developers in Vietnam, as they can communicate in English seamlessly. As for work culture, Vietnamese developers are highly adaptable, so it’s up to you to establish an operating culture for your Vietnamese IT talent team from the beginning. They will then follow suit and make it their own workflow.
Communication issues
The geographic distance can be an obstacle between you and the developers you hire in Vietnam and can lead to misunderstandings and conflicts in some cases. However, the rise of technological tools (like Microsoft Teams, Skype, Slack, etc.) has facilitated communication across the continent. So, the only thing you should do to overcome this challenge is to have a clear communication plan and process in place so everyone can be on the same page. Furthermore, to avoid miscommunication, you can schedule virtual meetings or calls more frequently.
Security concerns
When working with overseas developers, security is always the first and foremost concern. Therefore, it is important that you choose a reputable IT outsourcing company to help you establish and oversee your dedicated development team or offshore development center. By having a trusted partner by your side, you can minimize the risk of data breaches, cyberattacks, or intellectual property theft. An important tip here to overcome security concerns is to hire outsourcing companies that are ISO 27001 certified. These companies have stringent processes to promptly detect security incidents or breaches of data and take appropriate action, which is impossible when you work with freelancers or vendors without ISO 27001 certification.
Common mistakes when hiring developers in Vietnam
Skip the candidate screening process
Pre-screening is the process of verifying a candidate’s credentials. Employers can use this information to check candidates’ backgrounds to see if they are a good fit for their company. This is an important part that employers need to do before conducting a direct interview with any candidate. A lot of employers tend to skip this step to save time, but the reality is that you could be wasting more time than you think if you skip pre-interview screening. Instead, if employers carefully pre-screen candidates, they can select the right ones for interviews.
Hire a developer based on the resume
There are many people who have impressive resumes and can pass all interview questions with ease. However, a good profile does not mean everything in the recruitment process, especially in IT-related industries. Hiring a skilled software developer is more than just resume screening and interviews. After screening potential candidates, you should give them tests to accurately assess their abilities, practical experience, and how serious they are about the job and working with your company.
Lack of understanding of local salary standards and employment regulations
Your goal is to attract good IT talent at the most competitive prices on the market. So, when hiring developers in Vietnam or anywhere else, it’s important to research and understand the local salary standards for the position you’re hiring for. If you offer a salary below market value, you not only make it more difficult to attract top talent, but you also put your company at risk of losing current employees to a competitor.
In addition to wages, local employment regulations are something a foreign company like yours should pay attention to when hiring software developers abroad. For example, in Vietnam, you must pay your employees the 13th salary before the Lunar New Year, one of the most important holidays in Vietnam. This is not required by law but is an unwritten rule if you want to work with Vietnamese developers. So, it’s better to learn more about the employment regulations of the country where you are about to hire a developer.
How to hire developers in Vietnam efficiently
Use social media channels to reach talent
Vietnamese software developers are mainly concentrated in central cities such as Hanoi, Hue, Da Nang, and Ho Chi Minh City, but that does not mean there is no potential IT talent in these areas. As an outsider, you should leverage all the resources you can find to reach more local IT talent, and one of the most powerful tools to do that is social media channels.
Among the many social media platforms that help you connect with potential IT candidates, Facebook and LinkedIn are the two most used platforms for IT recruiting. According to Statista, 95% of Vietnamese Internet users will have a Facebook account and use the platform daily by 2021. That same year, the number of LinkedIn users reached approximately 3.75 million. With such a large user base, you not only have a higher chance of finding the most potential candidates for your company, but you also have more opportunities to connect with them.
Firstly, you can build your company profile on these platforms to gain the trust of the local IT workforce. Job postings and promotions are the next steps to attract them. On LinkedIn, you search for and proactively approach potential candidates because their profiles are right at your fingertips. For Facebook, you can not only post job postings on your page but also join related groups to directly hunt for IT talent. Furthermore, you can also conduct referral programs and promote them on these platforms. Facebook and LinkedIn will do their part to make information available to more users.
Hire a freelancer in Vietnam
Hiring a freelancer for your specific projects can be an ideal solution if you want to avoid the hassle and complications of hiring full-time staff or if you simply need a developer or two on the team. You can find and contact freelancers easily through many online platforms, such as Fiverr, Upwork, and Toptal.
However, there are also some disadvantages to hiring a freelancer that you should keep in mind. Working with freelancers from elsewhere means you can’t 100% control their quality or productivity. Maintenance and support can be a big challenge when you have to manage a freelancer who isn’t sitting next to you. No matter the situation, you only have one developer on your team, and they are freelancers. If they give up, you’ll be in trouble right away and have to start the project over. Furthermore, security is also a big concern. That’s why you should consider hiring an outsourcing company.
Cooperate with IT outsourcing companies
There are currently many IT outsourcing companies in Vietnam that can provide you with world-class software developers at affordable prices. If you are not good at recruiting overseas or simply do not have the time and resources for it, the optimal choice is to have an IT outsourcing company with the expertise and experience to do it for you. Outsourcing companies will take care of everything from finding talent and interviewing candidates to building a dedicated development team for you. These outsourcing service providers have the advantage of being local employers, so they understand the market well and can access more IT talent more easily and quickly than outsiders. By partnering with a company, you’ll save money and time on recruiting but can also prioritize other important business goals while still hiring the right people.
Hopefully, all the tips Twendee shared in this article will help you prepare a good strategy for hiring software developers in Vietnam and building an excellent offshore software development center team of your own.
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